Vontier Corporation · NYSE:VNT
Vontier — Q1 2021 Earnings Presentation
19 slides from Vontier's earnings presentation, May 6, 2021
Slide 1: First Quarter 2021 Earnings Release
First Quarter 2021 Earnings Release May 6, 2021 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to statements regarding Vontier Corporation’s (the “Company’s”) business and acquisition opportunities, anticipated revenu
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains references to “core revenue growth,” “free cash flow,” "free cash flow conversion," “adjusted free cash flow,” “adjusted free cash flow conversion,” “adjusted operating profit,” “adjusted operating profit margin" “adjusted core operating margin
Slide 4: Q1 2021 Summary
Q1 2021 Summary Strong execution drives double-digit core revenue and earnings growth. Raise FY21 guide. – Adj. EPS $0.63, +43% driven by strong operating leverage – Core revenue growth 14.3% – Core revenue growth excluding EMV +mid-teens – HGMs core revenue growth +> 25% – Strong fall-through of 45
Slide 5: Q1 2021 Financial Performance
Q1 2021 Financial Performance Summary of Key Financial Items • Core revenue growth: 14.3% • GAAP OP Margins +1520 bps • GAAP EPS of $0.54 • FX: 1.8% • Adj. Core OMX +380 bps • 23.6% Adj. Effective Tax Rate ("ETR") • Total growth: 16.1% Note: Adjusted Operating Profit Margin, Adjusted Core Operating
Slide 6: Q1 2021 Free Cash Flow Detail
Q1 2021 Free Cash Flow Detail Adj. Free Cash Flow ($M) and FCF Conversion (%) • Q1 2021: 145% – Free Cash Flow: $152M, +217%; conversion of 167% of GAAP Net Earnings – Adj. Free Cash Flow: $156M, +376%; conversion of 145% of Adj. Net Earnings, driven by strong earnings growth and unprecedented worki
Slide 7: Performance by Platform
Performance by Platform Mobility Technologies Diagnostics & Repair Technologies Revenue Revenue +15.2% • GVR high-teens +18.8% • Substantial same Core +12.7% non-EMV growth Core +18.6% store sales driven by HGM growth in Matco retail solutions, and continued environmental net franchisee and AMO grow
Slide 8: Thoughts on Q2 and Raised FY21 Guide
Thoughts on Q2 and Raised FY21 Guide Q2 Considerations – Anticipate core revenue growth of 23 to 25% – Expect adj. core OMX > 200 bps, excluding restructuring costs – Expect adj. EPS of $0.50 - $0.54 – ETR ~24% FY21 Considerations – Anticipate core revenue growth of +LSD to +MSD – Expect adj. core O
Slide 9: Supplemental Reconciliation Data
Supplemental Reconciliation Data 9 9
Slide 10: Reconciliation of Operating Profit to Adjusted Operating Profit and Margin
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED OPERATING PROFIT AND ADJUSTED OPERATING PROFIT MARGIN Three Months Ended $ in millions March 27, 2020 April 2, 2021 Revenue (GAAP) $ 609.2 $ 707.4 Operating Profit (GAAP) $ 21.8 $ 132.9 Amortization of acquisition-related intangible assets 7.3 7.6 Restr
Slide 11: Reconciliation of Adjusted Operating Profit Margin Expansion
RECONCILIATION OF ADJUSTED OPERATING PROFIT MARGIN EXPANSION Three Months Ended April 2, 2021 2020 Adjusted Operating Profit Margin (Non-GAAP) 17.6 % Core (Non-GAAP) 3.8 % 2021 Adjusted Operating Profit Margin (Non-GAAP) 21.4 % 11 11
Slide 12: Reconciliation of Net Earnings to Adjusted Net Earnings
RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS Three Months Ended $ in millions March 27, 2020 April 2, 2021 Net Earnings (GAAP) $ (4.2) $ 91.0 Amortization of acquisition-related intangible assets 7.3 7.6 Restructuring costs 0.1 4.0 Transaction- and deal-related costs — 1.8 Goodwill impair
Slide 13: Reconciliation of Diluted EPS to Adjusted Diluted EPS
RECONCILIATION OF DILUTED NET EARNINGS PER SHARE TO ADJUSTED DILUTED NET EARNINGS PER SHARE Three Months Ended March 27, 2020 April 2, 2021 Diluted Net Earnings per Share (GAAP) $ (0.02) $ 0.54 Amortization of acquisition-related intangible assets 0.04 0.04 Restructuring costs — 0.02 Transaction- an
Slide 14: Forecasted Adjusted Diluted Net Earnings Per Share
FORECASTED ADJUSTED DILUTED NET EARNINGS PER SHARE Three Months Ended Year Ended July 2, 2021 December 31, 2021 Low End High End Low End High End Forecasted Diluted Net Earnings per Share $ 0.43 $ 0.47 $ 2.25 $ 2.35 Anticipated amortization of acquisition-related intangible assets 0.04 0.04 0.18 0.1
Slide 15: Reconciliation of Operating Cash Flows to Free Cash Flow
RECONCILIATION OF OPERATING CASH FLOWS TO FREE CASH FLOW AND FREE CASH FLOW CONVERSION Three Months Ended $ in millions March 27, 2020 April 2, 2021 % Change Operating Cash Flows (GAAP) $ 55.6 $ 163.3 193.7 % Less: Purchases of property, plant & equipment (capital expenditures) (7.5) (11.0) Free Cas
Slide 16: Reconciliation of Operating Cash Flows to Adjusted Free Cash Flow
RECONCILIATION OF OPERATING CASH FLOWS TO ADJUSTED FREE CASH FLOW AND ADJUSTED FREE CASH FLOW CONVERSION Three Months Ended $ in millions March 27, 2020 April 2, 2021 % Change Operating Cash Flows (GAAP) $ 55.6 $ 163.3 193.7 % Less: Purchases of property, plant & equipment (capital expenditures) (7.
Slide 17: Components of Revenue Growth
COMPONENTS OF REVENUE GROWTH Components of Revenue Growth % Change Three Months Ended April 2, 2021 vs. Comparable 2020 Period Total Revenue Growth (GAAP) 16.1 % Core revenue growth (Non-GAAP) 14.3 % Impact of currency exchange rates (Non-GAAP) 1.8 % 17 17
Slide 18: Components of Revenue Growth by Platform
COMPONENTS OF REVENUE GROWTH BY PLATFORM % Change Three Months Ended April 2, 2021 vs. Comparable 2020 Period Components of Revenue Growth Mobility Technologies Diagnostics & Repair Technologies Total Revenue Growth (GAAP) 15.2 % 18.8 % Core revenue growth (Non-GAAP) 12.7 % 18.6 % Impact of currency
Slide 19: Net Leverage Ratio and Reconciliation to Adjusted EBITDA
NET LEVERAGE RATIO AND RECONCILIATION FROM NET EARNINGS TO EBITDA TO ADJUSTED EBITDA Total Debt $ 2,006.9 Less: Cash (670.3) Net Debt $ 1,336.6 Adjusted EBITDA (Non-GAAP) $ 696.8 Net Leverage Ratio 1.9 Three Months Ended Year Ended LTM $ in millions March 27, 2020 April 2, 2021 December 31, 2020 Apr